The starting of the business involves several of the risks and the constraints which are being based by the owner who took the initiatives. Acme firework which is being started two years ago and consisting of 15 employees have survived the starting hurdles and now taking initiatives for the further growth by joining with big corporations. The nature of business of Acme firework involves those commodities which needs to be protected by the law because of dangerous material are being made by them. The manager who is responsible for not just the workers whose security of life and are also involved with the next step of initiatives and those are contracts. Expansion and contracts are being considered here with the perspective of several laws concerning legal contracts and employees safety regulation the further discussion is based on the analysis according to the laws.
The dealing among the corporation which are related to expansion of business it is important to understand the complexities of the clauses involving such legal contracts. There are two of the most considerable and significant laws which have been used by the businesses for the contracts are Uniform Commercial code and the common law, both of them sharing such complexities and clauses are under discussion of Acme Firework before pursuing to conduct business with big corporations. The difference among both the laws makes it a big deal to know which contract is being used and the law which is being involved in it. The falling of contract whether UCC or common law makes it important to look which will provide the full fill of requirements. The dispute which is inevitable leave the deep impact if the law wasn’t considered beforehand. The breach of the contract involves all the damages and discharge of the contract which will be collected by the organization. In order to understand the breach the understanding also required to know the position of the both businesses (Griffith & Zhao, 2015).
The two governing bodies of the law make it the contract different from each other and before the understanding could be gained it is also important the types of contract under the both laws. The sales of goods and securities comes under the UCC, whereas the real estate, intangible assets, insurance and employment comes under the common law. The other type of contract which involves the both services delivery and goods sale and purchase then the clause which is dominant controls the contract regulations. Also, the countries are also being involved when comes to UCC because every country practice this law differently. Now it’s the duty of the manager of Acme Firework to determine whether the contract is being formed under the common law of Uniformed Commercial Code UCC. While going through all the requirements and clauses of both the laws the UCC is full filling the requirement of contract between Acme Firework and the other big business who forwarded the request to form the contract in order to provide the services in deliverance of goods on a regular basis. The reason behind the selection of UCC is because it relates with the Acme firework nature of business whereas, the contract law will be assessed when it comes to the expansion of business in accordance to further hiring of employees (Lader, 1996).
The second part of the requirement which is here full filled after the manager informed the owner to create the contract while considering all the essential elements of enforceable contracts which will be further discussed in order to understand what points are being considered the most by the manager and the owner (Martin, Marks & Barnes, 2016).
The legally enforceable contract includes five considerable requirements are as follow:
The expression of willingness which was shown by the other big businesses are considered to be as an offer defined by the law. The first party is the bug business which extends the offer by considering certain terms to another party which is second and here is the Acme firework will serve the second party role in the contract. The contract will only be made when the Acme firework accepts the offer by the big business whom they had already done business with. The nature of offer is different because the offer can be by the email or letter or sometimes the behavior of interest shows that the offer is being made here. The interest which was shown by the big businesses are also considered to be the offer to Acme fireworks.
The second part in the enforceable legal contract consist the acceptance from the second party which is Acme firework and that requirement is acceptance. Now, there are further parties involved in the acceptance requirement. The acceptance is final consent expression which is shown by the Acme firework to work further with the big business. The involved party means which was earlier mentioned is the manager can also shows the consent in form of acceptance because the authority is being given to the manager by the owner. The job of manager here is to offer the requirements of the Acme firework in form of acceptance letter. The requirement which will be changed make the offer of the first party invalid and second part will offer counter offer again. These requirements in this part will be beneficial for both to clear all the clauses which they wanted to add so that the impeachment of contract could be avoided in the future.
The other significant requirement which is consider to be the legally enforceable contract is competent of both the parties and those are Acme firework and the big business which forwarded the offer. This part is not applied to Acme Firework because it is legally registered sole proprietorship company. The other part which should be considered that whether the manager is authorized to accept the offer or not.
Lawful Subject Matter:
This requirement is also being full filled but the Acme fireworks because they are legally authorized business which are motivated enough to extend the business further and not selling or buying the illegal products. The law of the country matter here which should be considered because the condition of the country can change law of producing the fireworks which will influence business and null the contract.
The requirement involves both the parties, the one is Acme Firework and second one the big business which forwarded the offer. Both the parties should be involve in the process of formation of the contract and have the same intention while creating the contract. If the one party breaches the contract then that party will be accountable to the court. The mutual agreement between both parties is important and crucial for the formation of contract.
The potential liability is attributed to the Acme Fireworks because of the nature of business and the products which they are producing possess the threat to the lives of not just the employees but the consumption of it by consumers. There are several rules and regulations which should be followed in order to provide the security measures to the spectators. The first measure which is considered to be the most important one is using the legally provided material in production of the firework goods. The types of firework which are available and can be used are the legally provided and illegally provided. The one have the permit by the government and the other do not have the permit. According to UCC law, Acme firework consider the regulation which is defined by this law is the use of material under the limit of 36 inches, the noisemakers, snakes, cones foundations and other including these defined material which do not have the explosion of the amount that minimizes the threat. The government have provided the permits to specific kind of fireworks and the material which is used in producing those fireworks which is being followed by the Acme Fireworks.
For precautionary measures, the Acme should collaborate with the organization who deals with risk management and provide the medical assistance if anyone injured by the firework. The firm should be created and designed in a way which will state the incident details so that the reason behind the accident could be assessed. The other most important task which should be done by the organization is to provide the trainings to the workers who perform fireworks. Acme mostly deals with the services which different organization hired to perform firework for the events organized by those organizations. The trainings should be proper and advanced in accordance with the nature of work and involves protection to both the workers and the viewers of the firework. The contract which is being made to big businesses should also state such clauses so that the liability of the potential nature could be avoided (Rauterberg, 2015).
The Acme fireworks is considering to expending the business as big contracts are being formed which will eventually demands the increase in services and sale of goods. There are several kinds of employment opportunities which Acme can offered and it looking into under the law of agency. The agency law is considered to be the area comes under the commercial law. It deals with the employment types and the contracts which are being formed between the organization and the employees. The person who will work for the organization is known as the agent and the organization which is offering the employment is known as the principal. The legal relationship gives both of them these names and the third party which is government protects this contract of employment between agent and principal by acting as the third part. The principal is the one who controls the agent according to the requirement of the organization or works on behalf of principal as required by the organization. The law gives the equal opportunity to both in accordance with rights and responsibilities of both of them (Sakurai et al., 2014). The further division of the relationship between principal and agent are as follow:
- Principal and agent: In this relationship only these two are involved.
- Agent and the involvement of third party refers to working of the agent on behalf of principal.
As the Acme fireworks is considering to expend the business by hiring more employees, they should consider the types of employment. Following are some of the most significant types:
- Full time employment: This type of employment involves the contract between principal and the agent which deals with defined time for the work which is fixed and the time includes 40 hours per week. The schedule is defined for these types of employees and it’s a long term schedule. The example of full time employment employee in the Acme is the manager which was assigned a task to look for business legal matters.
The advantage of full time employment is the certainty of the work which being done by employee and the employees who are working full time tends to be more loyal as compared to other types of employees. The organization can invest on their trainings and development because they will spend the time longer as compared to others. The more the time spend by these types of the employees the more they will feel valued which will enhance their productivity and creativity.
The disadvantage of full time employment is that the new skills and talents which are increasing in the market will not be reached to organization because of no vacant positions. The other disadvantage is that the full time employed person proven to be costly because of the paid leaves and insurance provided to these employees.
- Part time employees: The type of the employment which only works certain amount of the work during the year which approximately 1000 hours per 12 months. They work on the target and they only serve the organization for the certain amount of period. The projects which are short term are mostly done by the part time employees.
The advantage of this type of employment is that the policy which being made on the staffing and hiring purpose serves the purpose of efficient supply of workers time to time. Their enthusiasm will be high because of the short deadline of their work.
The disadvantage of this type of employment is uncertainty of the employee presence in the organization and they will be less loyal to organization.
The acme firework should consider expending the business beyond the sole proprietorship because they have now big contracts from different organizations which had showed the satisfaction from their services. The expansion in the business will help them provide the ability to supply the goods and services uninterrupted. The number of employees which are increasing will needs to have benefits and salary packages. For providing such benefits they will have to expend the business for more pool of income and profit. The nature of business of Acme firework involves those commodities which needs to be protected by the law because of dangerous material are being made by them. The manager who is responsible for not just the workers whose security of life and are also involved with the next step of initiatives and those are contracts. The potential liability is attributed to the Acme Fireworks because of the nature of business and the products which they are producing possess the threat to the lives of not just the employees but the consumption of it by consumers. For this purpose they will need a risk management department which can only achieved through expansion of business. The Acme fireworks is considering to expending the business as big contracts are being formed which will eventually demands the increase in services and sale of goods. They should consider hiring the fulltime employed workers because when the expansion process started the business need loyal employees who can devote fully and participate with effort. These recommendations to Acme will help them grow in every way. The first one will be change the sole proprietorship to expansion, establish their risk management department to avoid accidents, provide facilities to injured people and to deal with incidents which can be a threat to business reputation and the last one will hiring the fulltime employees which will help them grow throughout the process.
Griffith, D. A., & Zhao, Y. (2015). Contract specificity, contract violation, and relationship performance in international buyer–supplier relationships. Journal of International Marketing, 23(3), 22-40.
Lader, P. (1996). RULES and REGULATIONS SMALL BUSINESS ADMINISTRATION. Policies of General Application, 13 CFR Part 114.
Martin, J. S., Marks, C. P., & Barnes, W. (2016). The Uniform Commercial Code Survey: Introduction. The Business Lawyer, 71(4), 1243.
Rauterberg, G. V. (2015). Agency Law as Asset Partitioning. Browser Download This Paper.
Sakurai, K., Nakata, A., Ikeda, T., Otsuka, Y., & Kawahito, J. (2014). Employment type, workplace interpersonal conflict, and insomnia: a cross-sectional study of 37,646 employees in Japan. Archives of environmental & occupational health, 69(1), 23-32.